Consider the tollowmg regression model tor hourly wage rate: l.n(wage) = B. + Bgedu + Bgexp + Sfemale + u where wage = hourly wage rate in dollars, edu = years of education, exp = years of work experience, and female = 1 if female, = 0 otherwise. Instrumental variables that are available in addition to those in the model are: medu = mother's years of education, and fedu = father's years of education. The above and other auxiliary models have been estimated and the Grer! outputs are provided at the end of the questions. Answer the questions in this section based on the above model and the provided outputs. Some additional notations used in the outputs are: l_wage = natural log of wage, edu_residual = residuals from the reduced-form estimation for edu, and tsls_residua1 = residuals from the 2SLS (TSLS) estimation of the model. Q1. Use the OLS estimation result to answer the following questions. (5 marks each, 25 marks in total) (1) Interpret the estimated coefcient for edu. (2) Estimate and interpret the elasticity ofwage with respect to education when edu = 15, exp = 10, and female = l. (3) Test if gender is important for wage rate. (4) Conduct a test on the hypothesis that an additional year of education has the same effect on wage rate as an additional year of experience. (5) Test if the model as a whole is signicant